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Secretary of State.

20.11.42-

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25 11.42

I think you ought to be acquainted with the present state of negotiations between H. M. G. and the Chinese Government on the subject of H.M.G.'s

relinquishment of extra-territorial rights in China. Mr. Gent's minute, which I have flagged, gives a general statement of the position. You may also like to look at the draft which we offered to the Chinese Government for consideration (No.48) and the Chinese reply (No.86). Finally, there is the telegram from (98) Sir H.Seymour to the Foreign Office No.1574, which I

have also flagged.

As regards the next step, Mr. Gent informs me that the Foreign Office will consult us before a reply is sent to Sir H. Seymour. My own view is that we should maintain our previous attitude that the New Territories outside Hong Kong are British territory during the period of the lease, and that we are not prepared to discuss their future in treaty negotiations relating to the abolition of extra- territorial rights.

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25.11.42.

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